Hey everyone Scott Cunningham aka @scottcbusiness today I want to talk to you guys about the real thing in my
opinion that people don’t understand about crypto isn’t actually block chain
or cryptocurrency or or any of that it’s actually that people lack a true
understanding of fiat currency and buy fiat currency if you’re new to this fiat
currency is just regular sovereign currency so as a Canadian Canadian
dollars u.s. US dollars that’s fiat currency like regular traditional money
the reason that I’m saying this and I’ve pointed a lot of these things out in
previous videos so previously I talked about how from 1913 to 2013 the US
dollar lost about 95 percent of its value a lot of people don’t understand
that regular money is it’s not really backed by anything anymore
a very very long time ago it was taken off of the gold standard and preet like
originally they were printing money to represent gold that was in vaults
eventually they started inflating the money meaning that they were printing
more money than there was gold and it wasn’t a 1 to 1 ratio or whatever the
original ratio was it wasn’t it wasn’t kept to be the same way because
sometimes they would need more money or whatever it might be once they got off
of the gold standard the value of the dollar decreased and because there is no
supply cap ever set there was no limit as to how much they could do this it
infinitely will trend toward zero as long as there’s inflation a low
inflation rate is really really good but it’s still trending towards zero
regular sovereign currencies start at a hundred percent of their value and then
they go down and they’ll only ever go down they might go up based on you know
different things happening in the economy you know when there’s a strong
economy it might be better once they lower inflation it might be better but
it’s always in the long run trending down towards zero most people don’t
understand that if they put money in the bank and say they’re getting one percent
interest if the inflation rate is one point eight per year they’re actually
losing 0.8 percent of the value of the money that they’re saving or they think
they’re saving so there’s an old saying where people say don’t save to save save
to invest because naturally if you really look at the way that fiat
currency is set up if you save to save you’re more than likely losing money or
you’re you’re just making yourself lose the money slow more slowly like if you
just have it and it’s not gaining any interest you’re just losing that money
slowly and if you’re getting a little bit of interest but it’s still below the
rate of inflation you’re just losing it less slowly and when people say oh like
that was worth a million dollars back in the day today that would be a billion
dollars isn’t that insane it’s like yeah but that’s not a good thing the only
reason that emit like a million hundred years ago would worth a billion or
whatever it might be today is simply because the value of money has gone down
and there’s just more printed but the actual value is way way down because the
prices are way way up of everything in in relation to inflation and it always it always seems weird to me
that so so many people are ignorant to this I was talking to a co-worker today
and she was like yeah but if cryptocurrency can just be created out
of thin air then how does it have any value well it’s the same as fiat
currency they print fiat currency as they please the Federal Reserve most
people don’t know this as well isn’t run by the government at all it’s called the
Federal Reserve to sound like it’s run by the government Federal but it’s it’s
completely privately owned and I think it was just a week or two ago that they
printed about 25 billion more dollars for the US dollar and that just goes to
show you it’s like where is that coming from did they acquire 25 billion more
dollars worth of gold absolutely not everything all the wealth was the same
they just inflated very heavily for a bit and people need to realize this
because that is how you understand why cryptocurrency has a lot of value
because almost all cryptocurrencies not all most have a supply limit and they
have hard-coded in what their inflation rate will be so currently bitcoins
inflation rate is like three point something and when it has next it will
go down to one point eight around there I can’t remember I mean I made a video
on this like a week ago I should remember or it was like two weeks ago
but the point being that it’s hard-coded in no one can just artificially change
that also they’ll only ever be 21 million bitcoins in existence there’s a
limit of how much can exist there is no limit to how much US dollars how much
Canadian dollars can exist meaning that inflation will continue to
make it lose value and it will keep trending towards zero until eventually
it might crash one day or we’ve figured out that
cryptocurrency and things with set limits on how much you can create is is
the future because like gold there’s only a limited amount of gold you can’t
artificially create more gold unless you try to counterfeit it and there is a lot
of counterfeit US dollars in Canadian dollars another thing that solved in
cryptocurrency is that there is no counterfeit cryptocurrency because the
blockchain the way that it’s set up it prevents therefore being counterfeit
currency so again increasing the value because it
can’t be counterfeited when there is the ability that or you know the capacity
for people to counterfeit money naturally the value of the actual money
goes down because it’s not unique enough and and again it really shows that it
doesn’t have the intrinsic value because it should be very very challenging to
just make more but people can people can fake it and get away with it and because
that’s possible it D values the money so the fact that counterfeit counterfeiting
money is possible D values the money the fact that there will never be a supply
limit to how much sovereign currency can be created D values the money because
there’s no scarcity there’s no there’s no limit to how much they can just keep
making more out of nothing there’s no value there’s no wealth that it’s
representing they’re just creating more and more and they’re spreading it
thinner and thinner thus devaluing it more and more and more
and that’s essentially what inflation does but the point of inflation is so
that there can be more available representation of the wealth to go
around but they’re devaluing the wealth by doing so and the whole scam that a
lot of people used to think was kind of a conspiracy but is much more well-known
today is that the Federal Reserve can print all this money
and they’ll just have this money and they’re good to go
but everyone else has to deal with the ramifications of that all the prices of
everything will go up to reflect that they still got all their money but
everyone else has to play catch-up and they have to deal with the ramifications
so essentially what people have come to understand is that the average person is
paying for the the interest or the inflation that they are controlling it’s
basically the same thing in Canada but it’s it’s largely linked to what’s going
on in the u.s. I mean our economy heavily relies on theirs and it’s
basically the same thing in many many countries it’s not always in like the
United States where a private company is able to actually control the sovereign
currency of the country it’s really weird that that’s the case and how would
that ever came to be but regardless that’s what we have now and the whole
point of this video is pointing out that it’s not that people don’t understand
crypto and they don’t understand you know where’s the value where’s the value
coming from because the value is created in how challenging me is to create
because you can’t counterfeit it you know because there’s only a certain
amount that’s ever gonna be there the inflation rate in all the everything is
hard-coded in it’s also completely transparent so you can see how much
Bitcoin is in existence today how much will be in existence tomorrow how much
was in existence 193 days ago how much was in existence five years ago
exactly you could never know that for sovereign currency because it’s not they
don’t track it and they we don’t know and we don’t know how much is
counterfeit so the lack of knowledge about it again D values the sovereign
currency so it’s not that people don’t understand
cryptocurrency it’s that they don’t understand what Fiat is they think they
understand what Fiat is but their lack of understanding of regular fiat
currency is exactly what prevents them from grasping and fully understanding
what cryptocurrency is and why it’s valuable and where the value comes from
cryptocurrencies tend to start at a very low value and over time they trend up
based on people using them and realizing that they are scarce and that there’s
only gonna be a certain amount it depends on the cryptocurrency but we’ll
just use Bitcoin as an obvious example originally Bitcoin was worth you know
zero point zero zero zero or one cent and when more and more people started to
use it and adopt it as a currency it gained more value because as my previous
video I think the name of it was money is based on or like wealth is based on
faith and attention because it’s really whether or not you believe that other
people are going to have faith in this currency if I have faith that Bitcoin
can get me you know this meal so that I can eat because I need to be able to
acquire food and if I can’t do that with Bitcoin then it doesn’t have a lot of
use to me and if a lot of other people don’t see it as valuable and they’re not
accepting it for the value that I want to trade it at then it doesn’t have
value but because so many people are vally like they do value Bitcoin and
they’ve put all this fiat currency into Bitcoin it does have value it’s about
ten thousand dollars u.s. I haven’t checked lately but that’s around where
it’s at and the point being that it’s likely to
continue going up over time I’m not actually suggesting any price
points I’m not making a prediction or saying this is you know 100% but if you
look at the history of any cryptocurrency that hasn’t you know
outright been a project that outright failed or was abandoned over time they
generally trend upwards sovereign currencies over time trend toward zero
because they don’t have limits and everything else that I explained so
again it’s really that people don’t understand or just never bother to
really look into how fiat currency works and and how inflation works and how the
wealth is actually represented and because they don’t understand that they
can’t understand cryptocurrency because they don’t understand the
problem that cryptocurrency solves and that’s why the average person doesn’t
see the value or they don’t see why it matters because they don’t see that it’s
solving a problem because they don’t understand that there was a problem to
begin with that’s why the people who are just saving saving saving they’re losing
money they’re losing their wealth it’s going down it’s inflating if you’re
unlucky enough to live in a country with a very high inflation rate and you’re
like wow I’m getting such a great interest rate but it’s still lower than
the inflation you’re losing money you’re always losing money there might be more
currency representation like the numbers might be higher but so is going to be
the prices of everything else and everything is going to reflect that
you’re actually losing wealth in the long term with a lot of cryptocurrencies
typically in the long term they gain wealth because more and more people are
adopting them and using it and again you know today or tomorrow
everyone could sell their Bitcoin and it could crash right but it would be the
same thing of if everyone started to sell gold it wouldn’t necessarily crash
because there would other there would be other people buying it and there’s only
gonna be a certain amount so it’s still it’s backed by the fact that there’s a
scarcity and for example with oil the prices of oil is always going up because
we’re using it up and there’s less and less and less and there’s only ever
gonna be a certain amount we can’t create oil so oil has a lot of value and
it’s the same with anything else that is a very scarce there’s only a certain
limit the things that are most valuable in society today like diamonds like gold
like things that are very very scarce oil very scarce very hard to acquire you
can’t fake it you can’t counterfeit oil it’s not useful people would know
because if it didn’t work if you couldn’t put it in your car and drive
your car then obviously it’s not oil right you can’t just give someone water
with black ink in it so the more challenging it is to counterfeit the
more scarce it is the limit that it has this is what gives the value so again
when someone tells you that cryptocurrency doesn’t have value or
like why does that value or I don’t get why there is value it’s not they really
don’t fully understand the value of fiat currency or why fiat currency is valued
the way that it is and this isn’t like a condescending like how you don’t get it
it’s it’s to explain as to why people don’t have that general understanding of
cryptocurrency and why it’s so why delude so many people because it’s like
why bother what’s the point it’s not solving anything well actually it is
solving something you just weren’t aware of the problem to begin with that it is
solving and it’s not like you weren’t aware because it doesn’t matter you just
weren’t aware and that’s fine because now you know and
if you think this was beneficial please share this with other people to help
explain to them why crypto has a value and why they might have not understood
why it has value and and and what fiat currency really represents I also have
another video of where I went over the graph explaining how fiat currency has
gone down so a lot of this is very similar but I really really wanted to
focus on the point that it’s not that people don’t understand crypto it’s that
they were never taught what fiat really meant and what it really was valued at
thank you for watching if you watched all the way to the very end make sure to
comment hash take number one ham and don’t forget to comment like it
subscribe you are awesome I hope you have an amazing day I’m Scott Cunningham aka @scottcbusiness signing off Cheers